Loyalty Program
A program designed to reward repeat customers and encourage frequent purchases, often used as a lever in cross-selling.
Implications
A structured marketing strategy designed to encourage repeat business by rewarding customers for their ongoing patronage, often through points, discounts, exclusive offers, or other incentives, relevant in customer retention and relationship management.
Example
Example: A supermarket introduces a loyalty program that awards points for every dollar spent, which can be redeemed for discounts on future purchases, driving repeat visits and increasing customer retention.
Related Terms
Different from a general marketing promotion, which might focus on attracting new customers, a loyalty program specifically targets existing customers to encourage repeat business and long-term engagement.
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